Important Keyword: Notification No. 02/2022 – Union Territory Tax (Rate), GST on bricks 2022, concessional GST rate on bricks, UT GST 2022 updates, Notification 02/2022 UT Tax Rate, GST bricks rate 2022, concessional GST without ITC, GST UT notifications bricks, GST Council brick scheme 2022,
Words: 1122; Read time: 6 minutes.
Table of Contents
[F. No.190354/56/2022-TRU]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, the 31st March, 2022
Notification No. 02/2022 - Union Territory Tax (Rate): Seeks to provide for a concessional rate on intra state supply of bricks conditional to not availing the ITC, as recommended by 45 GSTC
[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
G.S.R (E).- In exercise of the powers conferred by sub-section (1) of section 8 and clause (v) of section 21 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017) read with sub-section (1) of section 16 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council,
hereby exempts the intra-state supplies of goods, the description of which is specified in column (3) of the table below, falling under the tariff item, sub-heading, heading or Chapter, as specified in the corresponding entry in column (2) of the said table, from so much of the union territory tax leviable thereon under section 7 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017) as is in excess of the amount calculated at the rate specified in the corresponding entry in column (4) of the said table and subject to the relevant conditions annexed to this notification, the condition number of which is mentioned in the corresponding entry in column (5) of the said table:
Table
| Sl. No. | Tariff item, sub-heading, heading or Chapter | Description | Rate | Condition No. |
| (1) | (2) | (3) | (4) | (5) |
| 1. | 6815 | Fly ash bricks or fly ash aggregate with 90 per cent. or more fly ash content; Fly ash blocks | 3% | 1 |
| 2. | 6901 00 10 | Bricks of fossil meals or similar siliceous earths | 3% | 1 |
| 3. | 6904 10 00 | Building bricks | 3% | 1 |
| 4. | 6905 10 00 | Earthen or roofing tiles | 3% | 1 |
Explanation. –
- For the purposes of this notification, “Tariff item”, “sub-heading”, “heading” and “Chapter” shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).
- The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification.
ANNEXURE
| Condition No. | Condition |
| 1. | credit of input tax charged on goods or services used exclusively in supplying such goods has not been taken; and credit of input tax charged on goods or services used partly for supplying such goods and partly for effecting other supplies eligible for input tax credits, is reversed as if supply of such goods is an exempt supply and attracts provisions of sub-section (2) of section 17 of the Central Goods and Services Tax Act, 2017 (12 of 2017) and the rules made thereunder. |
2. This notification shall come into force on the 1st day of April, 2022.
(Vikram Vijay Wanere)
Under Secretary to the Government of India
📚 Frequently Asked Questions (FAQs): Notification No. 02/2022 - Union Territory Tax (Rate)
Q1: What is Notification No. 02/2022 – Union Territory Tax (Rate)?
Answer:
This notification introduces a concessional GST rate on intra-state supply of bricks, but only when suppliers choose not to avail Input Tax Credit (ITC). It implements recommendations of the 45th GST Council Meeting.
Q2: What concessional rate is applicable on bricks under this notification?
Answer:
A 6% Union Territory Tax (UTGST) is applicable (i.e., 12% total GST with CGST), provided that the supplier does not claim ITC on inputs or input services.
Q3: Can brick suppliers still opt to avail ITC?
Answer:
Yes. Brick suppliers have two options:
Pay concessional rate (6% UTGST) without ITC, or
Pay normal rate (9% UTGST) with ITC.
Q4: Why was this scheme introduced?
Answer:
The concessional scheme ensures a balance between small brick kiln owners (who face difficulties in maintaining ITC records) and larger businesses. It simplifies compliance for micro-enterprises in rural and semi-urban areas.
Q5: From when is Notification No. 02/2022 – UT Tax (Rate) effective?
Answer:
The concessional brick supply rate came into effect from 1st April 2022.
Q6: How does this affect buyers of bricks?
Answer:
Buyers must ensure the supplier has clearly mentioned whether the supply is under the concessional no-ITC scheme or under the regular scheme with ITC. This impacts the buyer’s own ITC claim.
Q7: What compliance steps must brick suppliers follow?
Answer:
File proper GST Returns reflecting concessional or regular scheme.
Maintain records of ITC in case opting for the normal rate.
For concessional scheme, declare non-availment of ITC.
Ensure timely GST Registration if turnover exceeds threshold.
Q8: How is this linked to the Special Composition Scheme for Brick Kilns?
Answer:
Alongside this notification, a special composition scheme for brick kilns was introduced (via UT Tax & IT notifications), allowing eligible suppliers to pay tax at a fixed rate without ITC. This provides consistency for the sector.
Q9: What are the benefits for small brick manufacturers?
Answer:
Reduced tax rate (lower cash flow burden).
Lesser compliance work (no ITC tracking).
Easier MSME Registration benefits when classified as micro or small units.
Q10: Where can businesses get professional help for compliance?
Answer:
Platforms like Finodha offer expert assistance with GST Compliance, Income Tax Return filing, GST Return Filing, and Setting up a business.
Download PDF: Notification No. 02/2022 - Union Territory Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
Read more interesting articles:
